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TMI Blog2024 (9) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... nd no infirmity in the order of CIT(A) in deleting the additions made u/s. 68 of as unexplained cash credit - Decided against revenue. - Shri Aby T. Varkey, Judicial Member And Shri S.R. Raghunatha, Accountant Member For the Assessee : Shri Akshit Jain, C.A For the Revenue : Shri A. Sasikumar, CIT ORDER PER S.R. RAGHUNATHA, A.M : This appeal by the Revenue is arising out of the order of the Commissioner of Income Tax (Appeals), [NFAC], Delhi [hereinafter CIT(A)] in DIN Order No.ITBA/NFAC/S/250/2023- 24/1060339451(1), dated 31.01.2024. The assessment was framed by the Assessing Officer for the Assessment Year 2017-18 u/s. 147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter the Act ), vide order dated 15.01.2022. 2. The grounds of appeal raised by the Revenue are as under: 1. The order of the learned CIT(A) is contrary to law, facts and circumstances of the case. 2. The Ld CIT(A) has erred in concluding that the Deposits / credits Assessee's Bank Accounts are nothing but sales/ turnover receipts if the Assessee ever without any supporting documents and evidences except some party lists and basic details, thus rendering the Order of the Ld CIT(A) perverse. 3. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of its case u/s. 148 of the Act. This contention of the assessee has been adequately addressed in previous objection rebuttal order based upon the facts of the case and record available in the file. S6, this issue does not require further discussion. 18.2 The assessee has also submitted that in previous year also it has turnover / gross income in hundreds of crore but important consideration in the present case of the assessee for A.Y. 2017-18 is not about questioning / verifying the turnover but for large value non cash transaction in the bank account of the assessee and moreover there has been large value of amount being credited in its account. 18.3 The assessee has argued that it has huge turnover but could not bring on record as what are the source of such huge banking transaction involving domestic and abroad credit as which are its client / parties from whom such credit has been received. Further, the onus the assessee to provide cogent justification and business exigency to accept such huge banking credit in its amount especially name and other details as well as genuineness of amount received from countries outside India. 18.4 The assessee has submitted documents but on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139(1) as the return filed in response to the notice under section 148 of the Act due to the inability to file a return under section 148 on account of an technical glitches in the Income Tax Portal. However, the AO stated in the assessment order that there was no cooperation from the assessee during the assessment proceedings and detailed that until the date of passing the assessment order, the assessee had not filed its return of income in response to the notice under section 148 of the Act. Therefore, the AO had no option but to treat the return filed under section 139 as non-est and proceed with passing the order as per the Act. On perusal of assessment order, it is observed that the assessee company received a substantial credit in its bank account amounting to Rs. 138,83,31,016/-. The assessee received funds from various entities, which were reported as Suspicious and non-genuine. Hence, the AO proceeded to add the same as unexplained cash credit under section 68 of the Act in the hands of the assessee while framing the assessment under section 144 r.w. section 147 of the Act in the absence of satisfactory explanation from the appellant's side. The appellant submitted be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le receipts (gross) at Rs. 178,81,73,712/-, as against the purchase of stock-in-trade of Rs. 175,17,29,026/- which is in accordance with return of income filed for AY 2017-18. The turnover of Rs. 178.81 crore is duly reflected in the audited Trading and Profit and Loss account of the appellant company, which can also be seen from return of income filed under section 139(1) of The Income Tax Act, 1961 for the year under appeal. The assessee has consistently maintained the stock of Rs. 168.54 crores for FY 2015-16, and for FY 2016-17, it was maintained at Rs. 175.17 crores, and the sale turnover is part of the stocks maintained, which is not disputed by the Assessing officer during the assessment proceedings. The AO has not pointed out any specific adversity but made a generalized addition without considering the factual aspects and primary evidence. The AO has also failed to make further inquiries on the information filed, and the assessee has discharged the initial burden placed by submitting the information and details. It is reiterated that the source of credits in the bank account of the appellant company was the proceeds of the turnover, which are reflecting in the profit and l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollected from the trade debtors and deposited to the bank accounts of the assessee. Further, the Ld. AR stated that the export turnover incentive has been received in the form of duty draw back which has been shown as income in the profit and loss account apart from showing the same in the account of the assessee as receipts. In light of the above argument, the Ld. AR prayed for upholding the order of the Ld. CIT(A) and requested for dismissing the appeal of the Revenue. 8. We have heard both the parties and perused the material available on record and the orders of the lower authorities. The assessee is a company dealing in business of export of pulses and spices as 100% exporter and is part of the Government of India recognized Star export house . The Assessee had filed its return of income for the impugned assessment year u/s. 139(1) of the Act by declaring a total income of Rs. 57,64,200/-. The return was also processed u/s. 143(1) of the act and accepted the same. During the assessment year 2017-18, as per the details available on record, the assessee company has huge credits in their bank account aggregating Rs. 138,83,31,016/- and based on such information notice u/s. 148 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achieving the huge turnover of exports including the current assessment year 2017- 18, wherein the turnover was Rs. 178.81 crores. The assessee has also earned duty drawback to the tune of Rs. 2,02,16,297/- during the assessment year, which is paid to the exporters by the Government of India for promotion of exports, in proportion to the export turnovers of the company. Further, it is noted that assessee had deposited the following amounts to the bank accounts during the relevant Assessment year: Kotak Mahindra bank Receipts from Sales (Sundry debtors) 2,02,16,297 Duty drawback from Govt. of India 2,10,954 Bank charges reversed 1,02,61,59,606 ICICI Bank OD account Receipts from Sales (Sundry debtors) 9,36,990 Building rent received 18,112 Bank charges reversed 74,34,68,310 Total 1,79,10,10,269 12. It is pertinent to note that the assessee has more credits in their bank account during the assessment year, which has been shown as business receipts than the amount mentioned in the notice issued u/s. 148 i.e. Rs. 138.83 crores. Therefore, we are of the considered opinion that, the assessee has proved the source of the huge bank deposits made during the assessment year. 13. Considering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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